Who are non-prime auto financing applicants?
Posted on Tuesday, July 28, 2015 at 10:21:50 AM
A recent survey of underbanked people came to a number of conclusions about who these borrowers are.
The FactorTrust Underbanked Index takes a look at demographics, seasonal factors and loan behavior, among other data points, to create a better understanding of the underbanked segment of consumers, according to a press release. FactorTrust's index, for example, found that the largest percentage of non-prime auto financing applicants are millennials. The average age of non-prime car loan applicants overall is 38.
Also, non-prime auto loan applicants make more than underbanked consumer loan applicants. In fact, millennial non-prime car loan applicants make about as much as Baby Boomer consumer loan applicants. Overall, people seeking non-prime auto financing make an average of $3,287 per month.
Most of these individuals are employed in the retail sector. Others have government jobs, or work for quick-serve restaurants. On the other end, they are less likely to work in healthcare or business services, an infographic accompanying the press release on the index explained.
As far as stability goes, non-prime auto loan applicants are more likely than consumer loan applicants to change both their addresses. Meanwhile, millennials are more likely than other demographics to change both phone numbers and addresses.